The ACT government rejected a tender proposal to provide a therapeutic protection place for Canberra's young in 2010 because of the cost and an evaluation deeming the operator unfit to provide such a facility.
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But the government revealed this was despite Housing ACT renovating a home in Belconnen in preparation. No such facility has yet been introduced in the ACT.
The government refused to name the unsuccessful tenderer, nor would it confirm whether they provide services for Canberra's young people in another fashion in the ACT.
It comes as the Australian Lawyers for Human Rights join the list of advocates calling for the ACT's criminal age of responsibility to be raised.
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In December, ACT Chief Magistrate Lorraine Walker expressed frustration in court that she could not send an 11-year-old girl to a therapeutic protection place despite such a place being mandated in the ACT Children's Act.
The girl had been arrested three times in a week for alleged violence against her carers.
The girl was ultimately released back to her carers. The alternative was sending her to the Bimberi juvenile detention facility.
Her case prompted calls for the government to raise the criminal age of responsibility to at least 12 and establish a therapeutic protection place.
A spokeswoman for ACT children's minister Rachel Stephen-Smith said a tender was undertaken in 2010 to find an operator for a therapeutic protection place.
"One proposal was received and the Tender Evaluation Committee found the proposal was lacking in several key requirements," the spokeswoman said.
"[It] did not demonstrate sufficient understanding of current research and best practice models for providing therapeutic secure care for children and young people affected by severe and complex trauma; and failed to provide value for money."
The government claimed they were unable to locate documents relating to the failed bid despite it progressing as far as having a property renovated in Belconnen.
"A Housing ACT property was renovated in preparation for being declared as a place of Therapeutic Care. However, the property was never used for this purpose and was subsequently used for residential care," the spokeswoman said.
The properties are now Housing ACT residences which were completed in June last year.
Canberra solicitor and Australian Lawyers for Human Rights' ACT convenor Sangeeta Sharmin said the United Nations has recommended the minimum age of criminal responsibility to be set at 12-years of age.
"We really think that it should be raised from 10 to a minimum of 12 and ideally a bit higher than 12. There's a few reasons for that, scientifically," Ms Sharmin said.
"Children under the age of 14 really just don't understand their actions."
Ms Sharmin said each time a young person was incarcerated it raised the possibility of them returning to prison.
"It should be a measure of last resort and it should be a minimum of 12 years across the ACT and all criminal jurisdictions," she said.
She said more than 600 children under the age of 14 were currently serving detention in Australia, with Indigenous children over represented in these statistics.
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